Softgrid App Launches... but never launches

I've have a pretty simple setup. Active Directory, App Server, Client, and VM-Based Sequencer (for easy clean rollbacks). I've sequenced a few apps (WinZip11, Notes 8.0) and the sequencing seems to have gone ok. I've imported the apps, assigned to a group, and refreshed the client and see that the apps are available. When I launch the app, the cache shows that it's pulling down the app, it get's to 100% and then just sits there. If I look at task manager, I see the app launched but only like 300k of memory is being used (obscenely wrong in the case of Notes). Additionally, the little status bar never goes away (always says "Loading 100%, Launching App"). There are no errors in the log, but no matter how or what I sequence, nothing will ever launch.

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This looks like you saved the package directly to the content share at the end of sequencing rather than saving to the local sequencer first.
Always ensure you save locally first, and then copy to the content share to avoid potential errors.

Alternatively try a fresh virgin sequencer OS or insert into the osd a script that will launch command prompt. If command prompt launches(which i expect it will) try loading the .exe file manually.
Does this application have any parameters ?

Well I thought that might be the solution. I was indeed saving directly to the content share.

So I reset my sequencer, started fresh, saved to the local filesystem. Copied everything to the content share. Same deal.

Ok, so maybe the app server doesn't like being run on XP. I created a new virtual computer, Server 2003. Installed the app server. Started from scratch on the sequencer (Winzip 11). No dice. The client sits at 100%, never launches.